naked calls, options trading
finances investing retirement

Making Naked Calls – 5 Tips to Salvage a Sagging Retirement

10 statistics from an Insured Retirement Institute (IRI) survey demonstrate an alarming fate for Baby Boomers:

  • Only 24% of Baby Boomers are confident they will have enough savings to last throughout retirement, down from 36% in 2012.
  • Of the Baby Boomers who lack confidence, 68% said they would have saved more, and 67% said they would have started earlier, when asked what they would have done differently.
  • Just 39% of Baby Boomers have tried to figure out their retirement savings need.
  • Only 55% of Baby Boomers have any money saved for retirement. In fairness, however, one in four Baby Boomers expects significant income from an employer-provided pension.
  • 59% of Baby Boomers cite Social Security as a major source of their retirement income.
  • 65% of Baby Boomers are worried about future changes to Social Security.
  • Only 43% of Baby Boomers are satisfied with how their lives are going from an economic perspective.
  • 26% of Baby Boomers don’t plan to retire until age 70 or later.
  • Only 22% of Baby Boomers believe they are doing a good job of preparing financially for retirement.
  • Only 27% of Baby Boomers believe they will have enough money for healthcare expenses.

As a certified cash flow and business development consultant and wealth creation educator, you can say it’s my job to find ways to generate consistent income cash flow, as well as create strategies that will help my clients to maintain that delicate balance between profit and loss.  More importantly, it is my job to educate and empower my clients with information that will transform their business and lives by not just helping them to make money, but build wealth.

I’m a Baby-Boomer, and fell into several of the categories and worried about retirement years and running out of money.  It required a restructuring of my strategy to not only build sustainable income, but ensure a wealth legacy for my family.

Like millions of Boomers, I was late to the retirement savings party, and had to become more aggressive in my planning where others within my age group are more moderate to conservative in their approach.

However, one of the methods for this aggressive approach has proven to be more predictable than expected, and armed with the right information has been very profitable.  No longer do I worry if there will be more money than life.

In previous post, I referred to the Seven Prosperity Principles.  Three of the principles are actual strategies that are used in wealth creation.  One strategy has many options, which by the way is the topic of this discussion; Options Investing.

A well-informed options trader can be successful in executing profitable trades without the help of a broker.  Simple strategies such as the NAKED CALL is an options income strategy that has the potential to provide weekly income if the underlying stock has weekly option contracts available.  This is one of my most successful income generating options trading strategies within my wealth creation arsenal to-date.

There is no question that the stock market is a volatile platform, and yes, it is true…the higher the risk, the greater the reward.  But, the object here is to not merely become a gambler, but an educated and deliberate trader.  This requires learning the money math of trading and understanding your risk/reward ratios.

I began my trading journey back in 1993.  I was introduced to the stock market by one of the partners at a firm where I worked.  I was so fascinated with the conversation, I went to the library (pre-internet days) and read a tons of books on the subject.  A few months later, I dared to jump right in ~ and I immediately hit the bottom.  It was the most horrific monetary loss to date. Foolishly, I traded futures, sugar, to be specific, for my first time out in the trading world (I would never recommend this to any novice trader).  Futures is probably considered one of the most notorious volatile markets.  I was not educated enough to understand the risk factor and lost $10,000 in two days.  Back then, that was a lot of money.

Fast-forward today, I having been trading stocks, options, and precious metals for about 20 years.  After my initial beat-down by the futures market, I decided to become more learned in the trading world, and have many friends that are brokers in the industry. Education is absolutely key for trading success.

Today, you can find many resources on options trading and many trading houses offer training for novice traders.

Here are some tips to get you started in this wealth creation strategy.

  1. Learn how trading works. Educate yourself on the various strategies with stocks and options and select the ones that fit your trading objectives.  Follow the market news, I favorite finance.yahoo.com.
  2. Learn the math behind the money. While everyone wants to let programs and apps do the heavy lifting, there is something powerful about knowing how to manually calculate your profits/losses, and reverse calculate any predictions by a computer.  Money math is powerful and empowering.
  3. Never trade if you are not willing to lose. This is a sacred rule that if broken will break you. When you learn and implement tip number 2, you can calculate your risk level with this rule.  Going in blind is dangerous and calculating the maximum risk is being prepared for the worst case scenario.
  4. Trade with paper money first. There are platforms that will allow you to place a “fake” trade before you put up any real money.  I wish this was around when I started trading.  It is a great way to test your strategy and perfect it before using real cash
  5. Never trade with your emotions. Feelings ebb and flow, go up and down, and so does the stock market.  It is very costly to trade on your feelings.  Using tips 1-4, will help you stick to tip 5.

Trading stocks and options is a great way to inject extra income into your wealth creation plan and it is in direct correlation to Prosperity Principle #3 – Make Your Money Multiply.  If you are wondering how to cushion your retirement a little more as you come closer to that age, consider researching this strategy for your financial future.

If you want to learn more about creating a strategy for wealth creation, download your free ebook How to Easily Create Your Wealth Legacy & Live a Remarkable Life.

 

To Your Remarkable Life & Legacy!

 

Kim Harris – #kim_thelegacycreator

#mypersonalbankingsystem

#makemoneybuildwealth

#makeyourcallsnaked


Disclaimer

Option and stock investing involves risk and is not suitable for all investors. Only invest money you can afford to lose in stocks and options. Past performance does not guarantee future results. KIM XI LEGACY ENTERPRISE LLC (KIM XI) is a financial information service. KIM XI does not provide any personalized or individual investment advice to any subscriber or user. The staff members at KIM XI are not brokers, advisers, financial consultants or securities dealers. The information presented in this web site is not a personalized recommendation or a solicitation to buy, sell or hold any investment or security of any kind.

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